Housing Bond Bill Resource Page 2024

Housing Bond Bill  Resource Page 2024

This is a resource page on the Massachusetts Housing Bond Bill. Newer information is listed first. (Updated 8/7/2024)

August 6, 2024: Governor Maura Healey Signs Most Ambitious Legislation to Address Housing Costs in State History

Final Affordable Homes Act Bill sent to Governor Healey for her signature on August 6, 2024 - you can download the pdf, this is not yet posted as a Session Law

- Affordable Homes Act to build or save 65,000 homes through $5.1 billion in authorizations and 49 policy initiatives

Background: This is a $5.16 Billion housing bond bill intended to kickstart housing production across Massachusetts. The housing bond bill was the last major piece of legislation to emerge from the closing hours of the formal legislative session for the year. Legislators reached agreement on the bill after the House and Senate had passed different versions in June.

The new housing law includes $2 billion for the rehabilitation, repair and modernization of more than 40,000 public housing units across the state, an increase of $500 million over what Gov. Maura Healey proposed in the Affordable Homes Act she filed last October.

It also makes significant investments for the HousingWorks Infrastructure Program ($175 million) and for innovative, sustainable and green housing initiatives ($275 million).

- Working in coalition with MWWA and UCANE, ACEC/MA asked our members to send this letter to the conferees advocating for water infrastructure in the Housing Bond Bill.  

- We had asked the legislature to Increase Funding for the HousingWorks Program to Invest in the Infrastructure Necessary to Support the Growth of Housing (SB2850; Line-Item 7004-0083). The HousingWorks Infrastructure Program (HousingWorks) has made investments throughout the state since 2023 (FY24). The program, patterned after the very successful MassWorks Infrastructure Program (MassWorks), has the potential to be a key facilitator for housing growth. We supported the Senate’s proposal for increasing the potential amount of bond funding to $375 million, with $100 million dedicated to water infrastructure, will allow for the ramping up and growth of this program to meet the anticipated growth necessary to support the significant increase in housing production. 

- The final bill funds HousingWorks at: $175,000,000, so we have more work to do in the next session.

Background information:

Senate Votes To Inject $5.4B Into Housing, Put Homeownership And Affordable Units In Reach

Senate version of Housing Bond Bill includes ACEC/MA-backed amendment

Senate votes and includes ACEC/MA-backed amendment on the Interbasin Transfer Act

The House version includes $1 Billion for the MWRA to connect additional communities: 

1. Unleashing Housing Growth with World-Class Water Infrastructure:

• Massachusetts faces a housing crisis, but many communities lack the water infrastructure to support new development.
• The MWRA, with its exceptional water quality (frequently touted as the best in the country!), has the capacity to serve millions of additional residents while remaining well below its safe yield and factoring in future climate impacts.
• However, the upfront costs of joining the MWRA system can be a major barrier.
• The MWRA's October 2022 system expansion feasibility studies project conceptual project costs for both the Ipswich River Basin communities and the South Shore communities of over $1 billion. 

2. Bridging the Gap: Investing in a Sustainable Future:

• The House version of the Housing Bond Bill proposes a critical $1 billion investment to help communities connect to the MWRA system.
• This funding would remove the financial burden ("sticker shock") for residents, making MWRA membership a realistic option.
• By joining the MWRA, communities gain access to a reliable, high-quality water source, enabling them to:
  • Address existing water challenges (stressed basins, PFAS concerns)
  • Support economic growth and housing development
  • Reduce pressure on local water sources, promoting environmental sustainability.

3. A Win-Win-Win for Massachusetts:

• This investment is a win for everyone:
  • Communities: Gain access to reliable water, enabling growth and development.
  • MWRA Ratepayers: Increased membership means potentially lower water assessments.
  • The Environment: Reduced reliance on strained local sources protects our water resources.

4. Let's Make it Happen:

This funding unlocks the potential of the MWRA to serve more communities, promoting housing development, environmental sustainability, and economic growth across Massachusetts. Let's invest in our future – let's support this critical legislation!

Senate Ways and Means Version of Affordable Homes Act

On 6/24/24, the Senate Committee on Ways and Means released S.2834, their proposal for the Affordable Homes Act. Amendments are due by 5 pm on June 25. 

ACEC/MA has been working in coalition with MWWA, UCANE, and the MWRA Advisory Board on language that would increase funding for water infrastructure for communities seeking to increase housing stock through the Affordable Homes Act.

The Senate Ways and Means version of this bill includes language that would provide "not less than $100,000,000 shall be expended as grants to cities and towns for sewer, septic and water infrastructure upgrades that advance projects that support housing development, preservation or rehabilitation.  

As noted below: the House added $1 billion in authorizations to expand the Massachusetts Water Resources Authority’s service area to support housing development in more communities in Massachusetts, This language is not currently in the Senate Ways and Means version of the bill.

ACEC/MA supports the language above and is supporting an amendment to the Senate version that would also provide funding for 

MA House Passes $6.5 Billion Housing Bond Bill

An Act relative to the affordable homes act

On June 5, 2024, the House passed a $6.5 billion bond bill aimed at addressing housing access and affordability throughout the state. The legislation builds on Governor Healey’s initial $4.1 billion housing proposal, adding nearly $2.5 billion to the bill’s bottom line. House leaders called this the largest investment in housing in the state's history. In addition to the capital spending authorizations in the Governor’s proposal, the House bill adds $500 million in bond authorizations for repairs, rehabilitation, and modernization of the state’s public housing units. Additionally, the House added $1 billion in authorizations to expand the Massachusetts Water Resources Authority’s service area to support housing development in more communities in Massachusetts. Other highlights from the bill include:

• Allowing for accessory dwelling units (ADUs) by right in single-family zones across the state
• Providing a local option enabling communities to offer tenants an opportunity to purchase a building when an owner wants to sell
• Creating a $150 million tax credit program to incentivize conversion of vacant commercial properties into multifamily residences or mixed-use developments

While the bill is largely in line with Governor Healey’s initial plan, it excludes her proposal to allow cities and towns to impose a transfer fee on certain high-value real estate transactions. The bill now heads to the Senate for consideration.

Governor files Housing Bond Bill

October 18, 2023

Affordable Homes Act

Affordable Homes Act Fact Sheet

The Healey-Driscoll administration today unveiled a $4.1 billion housing bond bill intended to jumpstart the production of homes and make housing more affordable across Massachusetts.

The Affordable Homes Act, a package of spending, policy and programmatic actions, represents the state’s largest-ever proposed investment in housing, while also addressing causes of housing unaffordability and making progress on climate goals.

In addition to $4.1 billion in capital spending authorizations, the bill includes 28 substantive policy changes or initiatives, three executive orders and two targeted tax credits, all directed at unlocking opportunities for production and preservation of housing. The majority of the spending will have benefits for moderate- and low-income households, according to the administration.

Gov. Maura Healey said an infusion of new homes is needed in Massachusetts to lower costs, accommodate population growth and achieve a healthy vacancy rate.

She said her plan would fund or enable the creation of more than 40,000 homes, including 22,000 new homes for low-income households and 12,000 new homes for middle-income households. In addition, the bill would preserve, rehabilitate or make resilience improvements to 12,000 homes for low-income households, support more than 11,000 moderate-income households, and fund accessibility improvements for 4,500 homes.

Healey added that the bill builds on housing development tax credits that were part of a tax relief package she signed on Oct. 4m 2023.

The administration said its bill would provide $1.6 billion for the repair, rehabilitation and modernization of the state’s more than 43,000 public housing units, including $150 million to begin “decarbonizing” public housing through the installation of heat pumps and electric appliances and another $15 million for accessibility upgrades.

Another $200 million would be authorized for the Housing Innovations Fund to support alternative forms of rental housing for people experiencing homelessness, housing for seniors and veterans, and transitional units for persons recovering from substance abuse.

In addition to helping to “green” Massachusetts’ public housing stock, the bill includes $115 million to ensure that new affordable housing developments meet increased standards while remaining economically viable. All the state’s housing investments would be required to prioritize and incorporate the state’s climate and decarbonization goals.

Policy initiatives include a local-option real estate transaction fee of 0.5% to 2% on the portion of a property sale over $1 million, or the county median home sale price. The administration said the fee would affect less than 14% of all residential sales, and would be paid by the seller of the property, with the money to be used to fund affordable housing developments within any community that adopts the provision.

The bill would add inclusionary zoning to the list of zoning changes that can pass by a simple majority, instead of the two-thirds supermajority, under the 2020 “Housing Choice” law.

The bill would allow accessory dwelling units of up to 900 square feet as of right throughout the state, with the ability for communities to set “some reasonable restrictions.” The MMA is opposed to this potential preemption of local zoning decision-making and will be raising these concerns as the bill makes its way through the legislative process.

Funding directed to housing production and preservation includes:
• $800 million for the Affordable Housing Trust Fund to provide resources to create or preserve affordable housing for households whose incomes are not more than 110% of area median income, and up to $50 million for MassDreams to create first-time homebuyer opportunities for households in Disproportionately Impacted Communities
• $425 million for the Housing Stabilization and Investment Fund to support preservation, new construction, and rehabilitation projects
• $175 million for the HousingWorks Infrastructure Program to fund municipal infrastructure projects to encourage denser housing development
• $100 million for CommonWealth Builder to spur construction of affordable homeownership opportunities
• $100 million for Mixed-Income Housing to support middle-income housing production
• $50 million for the Momentum Fund, a new initiative designed to leverage state resources to support large-scale, mixed-income multifamily development

The bill would also make the Community Investment Tax Credit Program permanent, and increase it from $12 million to $15 million per year, to support the work of Community Development Corporations. A new Homeownership Tax Credit would be created to spur production of homes affordable to first-time homebuyers earning not more than 120% of area median income.

Gov. Healey said she will also sign three executive orders creating a Housing Advisory Council to develop a statewide housing plan, creating an Unlocking Housing Production Commission to develop recommendations for streamlining housing production, and directing state agencies to develop an expanded inventory of state-owned land suitable for housing.